Indonesia-based steelmaker PT Gunung Raja Paksi Tbk (GRP) has announced that it is collaborating with Fortescue Future Industries (FFI), a subsidiary of Australian iron ore miner Fortescue Metals Group, to produce zero-emission steel in line with GRP’s plans to reduce carbon emissions. The company aims to replace natural gas at its plant in Cikarang, West Java, with green hydrogen sourced from Fortescue.
The Indonesian and Australian governments are supporting the initiative, with a technical feasibility study now underway through the Katalis business development program. The feasibility study is due to be completed in December 2023.
In the long-term, the companies may work together to develop a green hydrogen plant within GRP’s plant in Cikarang. The green hydrogen produced in this plant would, in that scenario, ensure continued efficiency in the company’s steel production.
In 2022, Fortescue Future Industries and PT Gunung Raja Paksi Tbk signed a memorandum of understanding to investigate how green hydrogen supplied by FFI could be used to help decarbonize the latter’s steelmaking plants, as SteelOrbis previously reported.